paying off a credit card

ceecee21

I rang Capitial One to pay the full outstanding balance on my card,but they told me I could'nt do that as interest would have accured by the time the next bill came,how can you have interest if the bill is paid in full and you do'nt use the card,also if you pay the bill in full do you not get a discount!

Gromitt

If you have always paid off in full then will not get interest unless you spent money on gambling or cash withdrawals.

As soon as you are late or miss a payment, you can get interest between the time your statement is sent to the time you pay it off, thus you may get a statement even if you have not used the card.

jonesMUFCforever

You may also have interest due if last months statement was not cleared in full.
What they are saying is correct.
They can take what the balance owed is today but cannot guessimate the interest charged.
You may also find trailing interest next month.

tickedon

ceecee21 wrote: »

I rang Capitial One to pay the full outstanding balance on my card,but they told me I could'nt do that as interest would have accured by the time the next bill came,how can you have interest if the bill is paid in full and you do'nt use the card,also if you pay the bill in full do you not get a discount!

Interest is calculated daily. If you get your statement on the 1st of the month, and ring to pay it off on the 15th of the month, there are 15 days of interest that will be added to your next bill.

What I've seen happen, personally, is when I pay the full balance off, I normally have an interest payment showing on my next statement of something like 56p - but then a second transaction showing that they've written it off.

Obviously, 56p means I didn't have a large balance to begin with that was accruing interest! So will really depend on your personal situation and how high the balance is.

The only way you will not pay any interest, is if the balance is £0 at the start of the statement period, and you then pay off every transaction in full every month after that.

david39

If you are leaving an outstanding balance from, say, April and pay the new balance off in full, the May statement (assuming no further purchases) will just show the interest that accrued between the date that the April statement was raised and when they received payment from you.

If you then pay off the interest shown on the May statement, that will result in the June statement showing a zero balance. They do not charge interest on interest-only balances as long as you clear them in full within the due dates.

OneLife_OneShot

I want to do this but why not just keep incase of an emergency? Clearly yo have some brain on you having been able to pay it off, might come in handy at some point, use it as an emergency fund if you have not got one?

thenudeone

ceecee21 wrote: »

also if you pay the bill in full do you not get a discount!

:rotfl:

So you want to borrow £100 from someone and then think they'll be happy to accept £95 to clear the debt?

Would you?